Skip to content
Subscriber Only
Opinion
Mark Gilbert

Currency War Claims Another Casualty: Denmark

Denmark is the latest casualty in the currency wars. I've seen this movie before; it never ends well.
A Fistful of Kroner.

A Fistful of Kroner.

Photographer: Chris Ratcliffe/Bloomberg via Getty Images

After half a decade of growing ever sleepier, the currency market has started the year with its most volatile period since 2011. As the victims of the Swiss franc detonation lick their wounds, Denmark is battling to avoid its krone becoming the next victim of the global currency wars, wielding a combination of negative interest rates plus market interventions to sell its own currency plus scrapping government bond sales as it defends its peg to the euro. I've seen this movie before; it never ends well.

Currency Pegs